Rick Kellow FHA & Reverse Mortgage Expert

Finally something to live in Wisconsin for... as reported by Mortgage News Daily...

Four cities in Wisconsin were among the locales with the highest credit scores. Texas, on the other hand, had four of the worst-ranking cities.

In Wausau, Wis., the average credit score is 789. That was the highest score of any city.

Wausau's standing was based on an analysis of a statistically relevant sampling of consumer credit data by Experian, which announced the report Tuesday.

Other Wisconsin cities to make the top-10 list were Madison, with a score of 785; Green Bay's 780 score; and La Crosse's score of 777.

Experian called Wisconsin residents "the nation's most fiscally responsible."

Consumers in No. 2 Minneapolis had an average score of 787. Minneapolis had the highest score of any city a year ago.

Cedar Rapids, Iowa, secured the fourth position on the list of cities that have the best credit, with a score of 781.

On the other side of the spectrum was Harlingen, Texas, where the score was 686 -- lower than any other city. Additional Texas cities to make the 10-worst scores were Corpus Christi, with a 702 score; Tyler, where the score was 710; and El Paso, which had a score of 710.

Jackson, Miss., had a score of 701, the second-worst of any city.

Louisiana sported two cities on the lowest-scoring list. Monroe and Shreveport tied for the No. 4 spot with scores of 706.

No. 8 on the worst list, Las Vegas, was highlighted for ranking among the bottom 10 regional credit scores for the past three years.

"Five out of 10 of the bottom markets have increased their credit scores and decreased debt since 2010," the report said. "However, average debt nationwide has only decreased by about 1 percent -- it is down about $200 to $24,542 -- indicating that those working to improve their debt-to-credit ratio are having difficulty making progress. A low debt-to-credit ratio is an important element of a high credit score."

Bank of America Corp. intends to sell its correspondent mortgage business, as the troubled lender looks to narrow its focus and bolster its financial strength, said people familiar with the situation.

Employees could be notified as soon as Wednesday that the lender has decided to exit the correspondent channel because it no longer fits with the long-term strategy for its mortgage unit. The company decided to get out roughly four to six weeks ago, following a review led by mortgage chief Barbara Desoer. The business employs more than 1,000 people.

The move represents another repudiation of Bank of America's 2008 purchase of Countrywide Financial Corp. That deal turned the Charlotte, N.C., lender into one of the nation's largest mortgage players but also saddled it with hundreds of thousands of delinquent loans and an array of mortgage-related lawsuits. The bank has already exited the wholesale business, which involves buying loans from independent brokers, and it has stopped offering reverse mortgages.

Correspondents fund loans and sell them to larger lenders such as Bank of America, the nation's largest bank. It has used the correspondent channel to build origination volume and make money by re-selling the loans to other parties and then servicing them.

Loans purchased from correspondents accounted for 47% of Bank of America's mortgage originations, or $27.4 billion, in the first quarter of 2011, according to Inside Mortgage Finance. Bank of America had a 24.3% share of the correspondent market in the first quarter, second only to Wells Fargo & Co.

"It is a huge retreat," said Guy Cecala, publisher of Inside Mortgage Finance. "Exiting correspondent altogether will reduce their volume significantly."

Bank of America has been looking to sell noncore assets as it tries to bolster its capital position. On Monday it agreed to sell half its shares in China Construction Bank Corp.

The House has passed a bill to extend a closing deadline for the homebuyer tax credit to Sept. 30, but similar action in the Senate is uncertain. By a 409-5 vote, the House passed a stand-alone bill (H.R. 5623) to ensure homebuyers who are expecting to receive the tax credit are not disqualified because delays have pushed their closing past a June 30 deadline. Under the homebuyer tax credit that expired April 30, first-time buyers had until today (June 30) to close and qualify for the $8,000 tax credit. Repeat buyers are in line for a $6,500 tax credit. The National Association of Realtors estimates that 75,000 buyers won't meet the closing deadline due to loan processing delays and lapses in the National Flood Insurance Program and Rural Housing Service single-family loan program. "We are strongly urging the Senate to act quickly to pass their legislation and ease the minds and pocketbooks of these homebuyers," said NAR president Vicki Cox. Senate Democrats' leaders have inserted the homebuyer closing extension in a larger bill that extends benefits for unemployed workers through November. But a Republican filibuster has blocked passage of the $34 billion unemployed benefit package for several weeks. A House-passed bill (H.R. 5569) to re-start the National Flood Insurance Program also is pending in the Senate.

Lawmakers consider home tax credit extension
Lawmakers consider giving homebuyers 3 more months to finish sales and qualify for tax credit

WASHINGTON (AP) -- Homebuyers may get an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

Senate Majority Leader Harry Reid, D-Nev., said Thursday he wants to give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal would only allow people who already have signed contracts to finish at the later date.

Reid introduced the proposal as an amendment to a bill that would extend jobless benefits through the end of November. Joining him were Sen. Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn.

Reid, who faces perhaps the toughest re-election campaign of his political career, represents a state that has the nation's highest foreclosure rate.

The National Association of Realtors has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.

"Time is of the essence," said Lucian Salvant, a spokesman for the group. "It's important for Congress to get this done, because there's whole bunch of loans that aren't' going to close on time."

First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.

Washington, DC - U.S. Rep. Rubén Hinojosa (TX-15) was informed by the United States Department of Agriculture (USDA) that Secretary Tom Vilsack has authorized the issuance of Conditional Commitments for USDA's Section 502 Single Family Housing Guaranteed Loan Program beginning immediately and continuing until $2.5 billion in loan limit is exhausted.

Hinojosa, Chairman of the Congressional Rural Housing Caucus, has been requesting additional funding from Congress for the program or for additional commitment authority from USDA upon learning that existing Section 502 commitment authority would be exhausted by the end of April or May of this year.

"Affordable rural housing is needed now more than ever as job losses and home foreclosures reduce the already inadequate housing options for rural Americans", said Hinojosa. "The serious economic downturn and the demand for this program nearly exhausted its funding despite a nearly three-fold increase in its loan authority since Fiscal Year 2006".


USDA's Section 502 Single Family Housing Guaranteed Loans are funded by private lenders, and insured by the Rural Housing Service under the supervision of Administrator
Tammye Treviño.

"As private mortgage markets have dried up, many rural families would have been left out in the cold without this action by the USDA", said Hinojosa.

The decision to increase the commitment authority even conditionally will provide the guarantees needed to assist rural families, local housing markets, create jobs and generate new tax revenues.

"Access to affordable lending capital is key for organizations such as ours that depends on programs such as the 502 guarantee program", said Bobby Calvillo, Executive Director of the Affordable Homes of South Texas, Inc., a non-profit housing initiative.
Calvillo added "By making these funds available via conditional commitments, this certainly re-opens the door to more low and moderate income families that may not have qualified for other conventional mortgage loan products".

USDA's Section 502 Single Family Housing Guaranteed Loan Program is one of several sources of financing for rural homebuyers. It guarantees loans to applicants who have incomes no higher than 115 percent of the median income for the area. Section 502 Guaranteed loans can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

"I commend Secretary Vilsack and Administrator Treviño for their wise decision to extend commitment authority for the Section 502 program as it will ensure the program continues to help build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities," said Hinojosa. "I look forward to a continued dialogue with USDA on several rural housing issues".

"By taking this step, Secretary Vilsack will provide vitally important homeownership resources to rural America," said Moises Loza, Executive Director of the Housing Assistance Council. Loza added, "HAC congratulates Congressman Hinojosa for his leadership on this issue and strongly urges USDA to continue to support rural housing programs that provide opportunities for low-income families to attain decent, affordable housing".